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Distributors's share: 20 pc if profit, 100 pc if loss!

Monday, April 18, 2016 • Tamil Comments
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The controversy involving Puri Jagannadh and three distributors of Loafer (Abhishek, Sudheer, Muthyala Ramdas) suggests that all is not well with film biz in Tollywood. It goes without saying that the escalating budgets and skyrocketing prices of rights as a logical consequence, are the usual suspects. From the latest controversy, we learn that the distributors have been at the receiving end of unfair arrangements (read clauses like Non-Returnable Investment) and the same have taken a toll on the health of the film industry itself.

The state of affairs is so dismal that, as claimed by a representative of the Telugu Film Distributors Council, the number of distributors has come down from about 300 to just 9 now. Many have been given a fatal glow by the film biz and some of them have even committed suicide.

What kind of arrangement is it where the distributor gains only 20 pc of the profit, but he has to suffer 100 pc loss, they ask in frustration. They also say that the clause of NRI (Non-Returnable Investment) makes the situation dire for them. They say that the gullibility of distributors has been capitalized upon for many years. "We are requesting that transparency be introduced in arrangements," they say.

With no legal remedies to fall back on, these hapless distributors have had to repose faith in the large-heartedness of certain directors. "After the failure of Akhil, VV Vinayak called his distributors and assured them that he was with them. He paid back nearly Rs. 3 cr. All the loss cannot be undone. But even if it is 10 pc, it's a little respite. We don't go to directors who are paid less than Rs. 1 cr. But those directors who receive fancy sums are requested to undo a part of our losses," the distributors say.

With the Loafer controversy snowballing into a major controversy by the day, there hopefully is light at the end of the tunnel for distributors, who may force a rethink of agreements that are hitherto skewed in favour of producers.

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